On Friday, Tata Sons won the bid of Air India. They placed a bid of Rs 18,000 crore out of which a payment done in cash will be Rs 2,700 crore and Rs 15,300 crore will be adjusted from the over Rs 60,000 crore debt the airline had as of August 31, 2021, Mr. Pandey. Tata Sons will now acquire a complete control over Air India. The bid also included the 50% stake in ground-handling company Air India SATS Airport Services Private Limited (AISATS). Tuhin Kanta Pandey, DIPAM Secretary, said that Tata’s SPV Talace Pvt Limited came out as the winner of bid. Half a century back, Tata gave the control of Air India to government.
Now, Tata sons will now have to transfer Rs 46,262 crore to AIAHL, a SPV formed by the government.
Rajiv Bansal, Civil Aviation Secretary, said that the winning bidder cannot retrench any employee for the period of 1 year and if done after a year, then will have to offer voluntary retirement scheme (VRS).
He further added that, gratuity and PF (Provident Fund) benefit will be given to every employee. Mr Rajiv Bansal also added, “As of today, there are 12,085 employees in Air India out of which 8,084 are permanent and 4,001 are contractual. Besides this, Air India Express has a employee strength of 1,434.”
‘Welcome back, Air India, while admittedly it will take a considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group’s presence in the aviation industry,” tweeted Ratan Tata, Chairman Emeritus, Tata Sons.
“On an emotional note, Air India, under the leadership of Mr J R D Tata had…gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation,” said Tata.
The Tata Group cannot transfer the Air India India brand or logo for five years and thereafter, can do so only to an Indian entity.
In this month, bids were placed by Tata Sons and Ajay Singh, chairman of SpiceJet. As per last month report, Tata had won the bid. But then Piyush Goyal, said that this has not been final yet.
Rs 70,000 crore loss is faced by Air India while government suffers loss of nearly Rs 20 crore every day. To sell Air India, this was the second attempt by PM, Narendra Modi.
In 1932, Air India began the journey as Tata Air Services, founded by JRD Tata. In 1953, the company was nationalised by the government. Till 1977, JRD Tata was the chairman.
Currently, Vistara is operated by Tata group in partnership with Singapore Airlines and in partnership with Malaysia’s AirAsia it operates AirAsia India.